Tama Group starts a (supply) chain reaction

Customer behaviours and expectations are changing dramatically, challenging the established supply chain and operations setups of leading industrial companies. In addition to this trend, the worldwide disruptions ignited by COVID-19 made investing in supply chain technology top-of-mind for many manufacturers. As a recent PwC Digital Trends in Supply Chain survey indicated, business executives consider embedding new technologies into their business model a top priority over the next three-to-five years, with 59% saying they will invest in new technologies.

Tama Group, a global innovative agricultural packaging solutions company, is modelling this trend by digitally transforming its supply chains to enable resilience, enhance data visibility and improve customer experience. The company was established in 1950 at Kibbutz Mishmar HaEmek, Israel. It’s worth noting that a kibbutz is a type of collective settlement unique to Israel, usually agricultural and often also industrial, in which all wealth is held in common. Profits are reinvested in the settlement after members have been provided with food, clothing, shelter, social and medical services. Mishmar HaEmek is a collective Kibbutz and Tama is a private Partnership owned by Mishmar HaEmek as well as Galed Kibbutz.

Today, almost 75 years since its founding, Tama has over 1,900 employees, 11 manufacturing sites, and a complex network of suppliers to support the delivery of agricultural packaging goods to farmers around the world.

I recently invited Niva Ben-Avi, TamaUP's Business Project Leader, to share the business case for Tama’s digital transformation, some of the key performance indicators (KPIs) that the company is tracking, and Niva’s own takeaways from the journey. She joined me at the Israel Supply Chain Management Association (ISCMA) conference in Kefar Sava on March 11, 2024. These are the highlights of our conversation.

Na’ama: Tama is a veteran kibbutz factory with activities all over the world. Tell us more about the enterprise.

Niva: Tama is a kibbutz company. We started as a small local kibbutz company producing agricultural packaging solutions. Our advantage comes from the fact that many members of our workforce come from an agricultural background. In fact, when I was a little girl, we used to help the kibbutz farmers when the press got stuck – that's how deeply invested we are in agriculture, in the products we sell and in farmers’ success. Their experience is so important to us. Today, Tama works with 11 factories around the world, serves customers worldwide, and is headquartered in Israel. 

Na’ama: In the context of resilience in supply chains, can you elaborate a little more on the complexity of your supply chain?

Niva: For goods to reach the farmer on time, we need to integrate and manage the production of 11 production sites located around the world, planning shipping and production. We must consider multiple changing parameters, such as seasonality, shipping times, supply and scheduling difficulties such as COVID-19 and potential shutdowns that can impact price increases. During harvest season, farmers around the world need immediate delivery, so we must plan for this, and our ability to deliver products timely is affected by seasonality. As farmers ourselves, quality and service to farmers are very important to us. Our end customers need the product in the right place and at the right time, and we need to maintain and improve this every time. 

Na’ama: Let's talk about the digital transformation. You have been working on Oracle systems for almost twenty years now. What were the reasons you embarked on such a big and challenging project?

Niva: Tama identified some distinct needs and requests raised by their commercial division. For instance, we recognized the need to digitise Tama’s own supply chains to support our teams and provide better services to our customers, real-time information processing and availability of information to decision-makers. Our manufacturing division needed to automate resources and to invest in a flexible and scalable platform to enable constant updating and upgrading. We want to continue leading the market not only with the quality of our supply and products, but also with our farmers’ experience and service – even during turbulent times. To reach this goal, we realised we needed to shift from our current ERP to one that will help us take the business to its next level.

Na’ama: What are the project goals?

Niva: First, digitising commercial processes for customers and business partners. Secondly, setting up a scalable platform with advanced services and flexible solutions. We also aim at gaining real-time data processing and accuracy in managing complete documentation, forecasting, and management data. And finally, we seek to optimise performance and scale. 

Na’ama: This large and intense digital transformation project is now called TamaUp. Tell us more about it.

Niva: TamaUP is an organisational project that involves all departments and units and not just a technical project or a project led by the IT function. We consider the change management track as one of the most crucial aspects of this project, because we understand that the organisation needs to change its processes, and we need all the business leaders with us. They are part of the project; they are not the clients of the project. This project is inclusive, and it covers all organisational units. With help from PwC, we are transforming our supply chain management and bringing the entire enterprise with us. 

Na’ama: As part of the TamaUp project, you implemented a re-organisation of the company. Can you tell us more about it?

Niva: Our re-organisation is a project within a project. Each project track is led by a triangle: an IT leader, a business leader, and a PwC leader. As we are progressing along the project phases, the direct involvement of the business parties allows us to hold in-depth discussions, all aligned with the “Design by Exception” methodology that PwC presented. 

Na’ama: How does Tama define and measure the project success? After all, without being able to measure various critical indicators and KPIs, how would we know we were able to achieve targets?

Niva: We are closely tracking KPIs per process and measuring the transformation by business-led KPI. We are looking to reduce inventory carrying costs, improve inventory accuracy to improve decision-making, improve operating margin and control costs. We check these KPIs at each stage of the project. 

Na’ama: Finally, what would you say to business leaders who are considering embarking on a transformation journey?

Niva: I would say that inclusion of business leaders within and across all project phases and tracks cannot be replaced nor underestimated. Our business processes and challenges are a complex task, and if the business side is not a contributing part of the project, there isn't a project. Or at least not a successful project. And this is something important to insist on and prepare for from the beginning.

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